Ohio § 4981.15

§ 4981.15.

(A) The Ohio rail development commission, from time to time, may issue bonds in such

principal amounts as the commission finds necessary to finance one or more rail service

projects. Sections 9.98 to 9.983 of the Revised Code are hereby made applicable in their entirety to any bonds authorized to be issued

under this chapter except as otherwise provided herein. (B) The commission, from time to time, may issue renewal bonds, issue bonds to pay such

obligations and, whenever it considers refunding expedient, refund any bonds by the

issuance of bonds by the authority granted by this chapter.  Except as may otherwise be expressly provided in this chapter or by the commission,

every issue of its bonds or notes is an obligation of the commission payable out of

the revenues and reserves created for such purposes by the commission, which are expressly

pledged for such payment, without preference or priority of the first bonds issued,

subject only to any agreements with the holders of particular bonds or notes pledging

any particular revenues.  Such pledge shall be valid and binding from the time the pledge is made and the

revenues so pledged and thereafter received by the commission immediately shall be

subject to the lien of such pledge without any physical delivery thereof or further

act and the lien of any such pledge shall be valid and binding as against all parties

having claims of any kind, in tort, contract, or otherwise, against the commission

irrespective of whether such parties have notice thereof. (C) All such bonds shall have and are hereby declared to have all the qualities of negotiable

instruments.  The bonds shall be authorized by resolution of the commission, shall bear such date

and shall mature at such time, in case of any such note or any renewal thereof not

exceeding five years from the date of issue of such original note, and in the case

of any such bond not exceeding fifty years from the date of issue, as such resolution

may provide.  The bonds and notes shall bear interest at such rate or rates, including variable

rates, be in such denominations, be in such form, either coupon or registered, carry

such registration privileges, be payable in such medium of payment, in such place,

and be subject to such terms of redemption as otherwise set forth in this chapter

as the commission may authorize.  The bonds of the commission may be sold by the commission at public or private sale,

at or not less than the price the commission determines.  The bonds shall be executed by a voting member of the commission, selected by the

commission and approved by the speaker of the house of representatives and the president

of the senate, who may use a facsimile signature.  The official seal of the commission, or a facsimile, shall be affixed thereto or

printed thereon and attested, manually, or by facsimile signature, by the secretary-treasurer

of the commission.  Coupons, if any, attached thereto shall bear the signature or facsimile signature

of the chairperson of the commission.  In case any officer whose signature, or a facsimile of whose signature appears on

any bonds, notes, or coupons ceases to be such officer before delivery of such bonds

or notes, such signature or facsimile is nevertheless sufficient for all purposes

the same as if the officer had remained in office until such delivery.  In case the seal of the commission changes after a facsimile is imprinted on such

bonds or notes, such facsimile continues to be sufficient for all purposes. (D) Any resolution authorizing any bonds or any issue thereof may contain provisions,

subject to such agreements with bondholders or noteholders as may then exist, which

provisions shall be a part of the contract with the holders thereof, as to pledging

all or any part of the revenues of the commission to secure the payment of the bonds

of any issue thereof;  the issue and disposition of revenues of the commission;  the

setting aside of reserve funds, sinking funds, or replacement and improvement funds

and the regulation and disposition thereof;  the crediting of the proceeds of the

sale of bonds to and among the funds referred to and provided for in the resolution

authorizing the issuance of the bonds;  providing for the pledge or use of the rail

development fund created by section 4981.09 of the Revised Code ;  the use, lease, sale, or other disposition of any assets of the commission;  limitations

on the purpose to which the proceeds of the sale of bonds may be applied;  the agreement

of the commission to do all things necessary for the authorization, issuance, and

sale of such bonds which may be issued in such amounts as may be necessary for the

timely retirement of such bonds;  limitation on the issuance of additional bonds which

may be issued and secured;  the refunding of outstanding bonds;  the procedure, if

any, by which the terms of any contract with bondholders or noteholders may be amended

or abrogated;  the amount of bonds the holders of which must consent may be given;

 limitations on the amount of moneys to be expended by the commission for operating,

administrative, or other expenses of the commission securing any bonds by a trust

agreement;  and any other matter, of like or different character, which in any way

affects the security or protection of the bonds. (E) In connection with each such issuance of bonds, the commission shall establish in

its name an improvement fund or funds in the name of the rail service project or projects

for which the permitted loan or expenditure is to be made.  The proceeds of each issue of bonds, except for any portion thereof required under

the bond proceedings to be deposited in a bond service fund, bond service reserve

fund, or other special fund established pursuant to the bond proceedings for such

issue of bonds, shall be deposited in the designated fund, and together with any investment

income thereof, shall be held in trust and applied solely to permitted bond purposes

and in accordance with such bond proceedings. (F) The right of holders of bonds issued by the commission to payment of debt service

on such bonds shall be limited to the pledged receipts and special funds pledged thereto

pursuant to the bond proceedings and any moneys available for such payment under any

credit facility issued with respect to such bonds.  The holders of such bonds shall have no right to have moneys raised by ad valorem

taxation obligated or pledged, and moneys raised by ad valorem taxation shall not

be obligated or pledged for the payment of debt service on bonds issued by the commission,

except to the extent, if any, that the general assembly or legislative authority of

qualifying subdivisions and local or regional transportation authorities that borrows

moneys derived from the proceeds of such bonds pledge any moneys they raise by ad

valorem taxation to the repayment of such borrowings and the moneys so raised and

paid to the commission are obligated or pledged to the payment of debt service on

the bonds pursuant to the bond proceedings. (G) The bond proceedings adopted by the commission authorizing the issuance of bonds

shall provide for the general purpose thereof and shall specify, or shall authorize

one or more officers of the board of directors to determine, subject to limitations

set forth in the bond proceedings:  the aggregate principal amount of the bonds;  the

form and manner of execution and authentication of the bonds;  the principal maturity

or maturities;  whether the bonds are to bear interest at a fixed rate or rates or

under a floating rate interest structure;  if a fixed rate or fixed rates of interest

are to be borne by the bonds, the interest rate or rates:  if the bonds are to bear

interest under a floating rate interest structure, the manner in which the floating

rate is to be determined for each interest-rate period, the length of each interest-rate

period, and the extent to which and manner in which the interest-rate period may be

changed from time to time;  the put arrangement or arrangements, if any, to be available

to holders of the bonds;  and the paying agents, remarketing agents, indexing agents,

or other agents, if any, to be engaged in connection with the issuance of the bonds.  The bond proceedings, either expressly or by reference to other bond proceedings

thereby approved or otherwise applicable, also shall specify:  the pledged receipts

and the special fund or funds to be pledged to secure the payment of the debt service

on the bonds;  whether the pledged receipts are pledged on a basis prior or subordinate

to other expenses, claims, or payments and whether other bonds have been or may be

issued by the commission secured by the pledged receipts on a basis prior to or on

a parity with the bonds;  the credit facility or facilities, if any, to be obtained

with respect to the bonds;  and the rights and remedies that may be exercised by the

holders of the bonds or by a trustee on their behalf upon the occurrence of an event

constituting an event of default under the bond proceedings, which rights and remedies

shall include, except to the extent restricted by the bond proceedings, any rights

and remedies available under the laws of the state for the enforcement of the payments

required under and any other agreements made in, the bond proceedings.  The bond proceedings, either expressly or by reference to other bond proceedings

thereby approved or otherwise applicable, also may provide for:  the mandatory or

optional redemption of the bonds prior to their stated maturity;  limitations on the

issuance of additional bonds by the commission;  the investment of moneys in the improvement

fund and any special funds, without regard to Chapter 131. or 135. of the Revised

Code, but subject to any provisions of Chapter 4981. of the Revised Code, and the

bond proceedings with respect thereto;  a maximum rate of interest that bonds with

a floating rate interest structure may bear, without regard to section 9.95 of the Revised Code ;  any restrictions not inconsistent with this chapter on the amount and terms of

and security for the repayment for loans made to qualifying subdivisions, local or

regional transportation authorities, or other persons from the improvement fund;  and

any other term, condition, or provision of or with respect to the bonds which may

be included in the bond proceedings. (H) The revenues and any special funds pledged to the payment of debt service on bonds

pursuant to the bond proceedings for such bonds and thereafter received by the commission

or by an agent on behalf of the commission are immediately subject to the lien of

such pledge without any physical delivery thereof or further act.  The lien of any such pledge is valid and binding against all parties having claims

of any kind against the commission or against any person, qualifying subdivision,

or local or regional transportation authority or municipal corporation that is an

absolute obligor with respect to such bonds, irrespective of whether such parties

have notice thereof, and shall create a perfected security interest for all purposes

of Chapter 1309. of the Revised Code, without the necessity for separation or delivery

of funds or for the filing or recording of the bond proceedings by which such pledge

is created, or any certificate, statement, or other document with respect thereto;

 and the pledge of such pledged receipts and special funds is effective and the moneys

therefrom and thereof may be applied to the purposes for which pledged without necessity

for any act of appropriation.  Every pledge, and every covenant and agreement made in the bond proceedings with

respect thereto, may therein be extended to the benefit of the owners and holders

of the bonds authorized to be issued under this section and to any trustee or paying

agent for such owners and holders for further security of the payment of the debt

service on such bonds. (I) Each duty of the commission and of its members, directors, or officers and each duty

of any other governmental agency and its officials, members, or employees undertaken

pursuant to the bond proceedings or in any participation agreement is hereby established

as a duty of the commission or of such qualifying subdivision or local or regional

transportation authority or governmental agency and of each such member, officer,

official, or employee having authority to perform such duty, specifically enjoined

by law resulting from an office, trust, or station within the meaning of section 2731.01 of the Revised Code .  The persons who are at the time the members, directors, officers, or employees of

the commission are not liable in their personal capacities on any bonds issued by

the commission or under any of the bond proceedings with respect thereto. (J) Bonds issued under this section are lawful investments of banks, savings and loan

associations, deposit guarantee associations, trust companies, trustees, fiduciaries,

insurance companies, including domestic for life and domestic not for life, trustees

or other officers having charge of sinking and bond retirement funds or other funds

of the state and of political subdivisions and taxing districts of the state, the

commissioners of the sinking fund of the state, the industrial commission, the state

teachers retirement system, the public employees retirement system, the school employees

retirement system, and the Ohio police and fire pension fund, notwithstanding any

other provisions of the Revised Code or rules adopted by any state agency with respect

to investments by them, and are also acceptable as security for the deposit of public

moneys.  For the purpose of causing bonds issued by the commission to be eligible for investment

of interim moneys of the state or any subdivision of the state under section 135.14 of the Revised Code , but solely for that purpose, bonds issued by the commission shall be deemed to be

bonds or other obligations of this state for purposes of division (B)(4) of section 135.14 of the Revised Code . (K) The bonds issued by the commission, the transfer thereof, and the income therefrom,

including any profit made on the sale thereof, shall at all times be free from taxation

within the state. (L) Any bonds which recite that they are issued pursuant to this section, which comply

on their face with such section, which are issued for one or more permitted bond purposes,

and for which the commission has been paid in full, shall in any action or proceeding

involving their validity be conclusively deemed to have been issued, sold, executed,

and delivered in conformity with law and shall be incontestable unless such action

or proceeding is begun prior to the delivery of such bonds to the original purchaser

or purchasers thereof. (M) In the event that the sum of all reserves pledged to the payment of such bonds shall

be less than the minimum reserve requirements established in any resolution or resolutions

authorizing the issuance of such bonds, the chairperson of the commission shall certify,

on or before the first day of December of each year, the amount of such deficiency

to the governor for inclusion, if the governor shall so elect, of the amount of such

deficiency in the budget to be submitted to the next session of the general assembly

for appropriation to the commission to be pledged for payment of such bonds or notes.  The general assembly shall not be required to make any appropriations so requested,

and the amount of such deficiencies do not constitute a debt or liability of the state. (N) All property of the commission is exempt from levy and sale by virtue of an execution

and no execution or other judicial process may issue against the property.  A judgment against the commission may not be a charge or lien upon its property.  However, nothing in this section applies to or limits the rights of the holder of

bonds or notes to pursue a remedy for the enforcement of a pledge or lien given by

the bank on its revenues or other money. (O) No action to contest the validity of any bonds of the commission to be sold at public

sale may be brought after the fifteenth day following the first publication of notice

of the sale of the bonds.  No action to contest the validity of any bond sale under this chapter may be brought

after the fifth day following the bond sale. (P) If bonds are sold at private sale, the commission may publish notice of the execution

of the contract of sale of the bonds one time in a newspaper published and of general

circulation in the city of Columbus.  If notice is published as permitted in this division, no action to contest the validity

of such bonds or notes sold at private sale may be brought after the fifteenth day

following the publication of notice of the execution of the contract of sale pertaining

to the bonds. (Q) If an action challenging the bonds of the commission is not brought within the time

prescribed by division (O) or (P) of this section, whichever is applicable, all bonds

of the commission shall be conclusively presumed to be fully authorized and issued

under the laws of the state, and a person or a qualified entity is estopped from questioning

their authorization, sale, issuance, execution, or delivery by the commission. (R) Insofar as the provisions of this section are inconsistent with the provisions of

any other law, general, special, or local, the provisions of this chapter shall be

controlling.